After an accident, you might make a claim with your insurer and afterwards, three things could happen; your claim may get approved, your insurer might ask for more information or your claim may get rejected. As a policyholder, it is critical to understand situations where your claims may be rejected by your insurer.
Here are some of the reasons why your car insurance claim may be rejected;
A motor insurance policy in Kenya consists of 2 main kinds of coverage. They include; third-party cover (which pays if you injure someone, damage someone else’s car or other property) and comprehensive cover (which has the third party cover and extends to include cover for your own vehicle against fire, accidental damage or vandalism). Therefore, for instance, if you decide to only have the third party cover, you will not be covered for any physical damage to your vehicle hence, your claim will automatically be rejected.
If you are driving with an expired policy
Has the policy expired or been terminated by the insurer? Are your premiums up to date? This could be a reason why your motor insurance claim may be declined.
If there is evidence of an unlicensed driver
If the car is stolen or involved in an accident in the care of an unlicensed driver, the claim may be rejected.
Making false claims
The insurance contract is based on utmost good faith. Therefore, in case your motor insurance claim is found to be false or fraudulent, then your insurer can reject your claim.
Violation of motor laws
Even if you have the right kinds of coverage, your insurer can deny your claim if you were in violation of state law when the accident happened. One example of that would be driving without a valid license or driving under the influence of drugs and alcohol.
Was the claim filed within the time limits set by the policy, i.e. immediately? If you delay in filing your motor insurance claim, it could negatively affect the insurer’s ability to investigate the claim therefore causing the claim to be declined.
Car accidents can be stressful and the last thing you would want is your motor insurance claim getting declined due to the above reasons. To avoid this, here are a few tips;
- Renew your policy on time.
- Abide by the set traffic laws and regulations.
- Be honest when making claims.
- Understand and follow the claim process.
- Pay your premiums on time.
If you keep the above mentioned reasons and preventative measures in mind, then the claim process will most likely be a smooth process.